Textron Completes Acquisition of Pipistrel

Rhea-AI Summary

Textron (NYSE: TXT) has completed its acquisition of Pipistrel, a leader in electrically powered aircraft, for approximately €218 million. Pipistrel is known for the Velis Electro, the first electric aircraft fully certified by EASA. The acquisition allows Textron to enhance its eAviation segment and accelerate development of sustainable aviation solutions. Pipistrel will remain a distinct brand, with its operations in Slovenia and Italy continuing as is. Founder Ivo Boscarol retains a minority stake and will advise on product strategy for two years.

Positive

• Acquisition of Pipistrel enhances Textron's position in the sustainable aviation market.
• Access to Pipistrel's electric aircraft expertise may lead to accelerated development and certification of new products.
• Expected synergies from combining Pipistrel's technology with Textron's resources and global network.

Negative

• Potential challenges in integrating Pipistrel into Textron's existing operations.
• Risks associated with achieving anticipated synergies and opportunities from the acquisition.

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Textron Inc. (NYSE: TXT) today announced that it has closed its acquisition of PIPISTREL d.o.o., PIPISTREL VERTICAL SOLUTIONS d.o.o. and PIPISTREL ITALIA S.R.L., known collectively as Pipistrel, an award-winning pioneer and global leader in electrically powered aircraft.

Pipistrel, which developed the world's first and currently only electric aircraft to receive full type-certification from EASA, is now part of Textron. (Photo: Business Wire)

Pipistrel’s Velis Electro is the world’s first, and currently only, electric aircraft to receive full type-certification from the European Union Aviation Safety Agency (EASA). The company, which offers a family of gliders and light aircraft with both electric and combustion engines, has delivered more than 2,500 light aircraft worldwide since its founding in 1989 and additionally has both hybrid and electric propulsion models under development.

As a Textron company, Pipistrel will have access to greater resources, technical and regulatory expertise and a global aircraft sales and support network, enabling it to accelerate its development and certification of electric and hybrid electric aircraft. Pipistrel is now part of Textron’s newest business segment, Textron eAviation, which will pursue Textron’s long-term strategy to offer a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission roles. Rob Scholl, who has been leading Textron’s eAviation initiatives to date, has been named president and CEO of the segment.

“Pipistrel has already achieved what many other companies only aspire to – certifying and delivering highly regarded electric aircraft to customers around the world,” said Textron Chairman and CEO Scott Donnelly. “We are excited to accelerate Pipistrel’s development and to welcome its talented people into our organization, where we will pool expertise to make Textron a world leader in sustainable aircraft for a wide range of missions.”

Pipistrel will remain a distinct aviation brand within Textron, alongside the company’s already established Cessna, Beechcraft, and Bell brands. Its headquarters, research and development, and manufacturing will remain in Slovenia and Italy, where Textron plans to make additional investments to expand manufacturing and product development capabilities.

“With Pipistrel, we have the opportunity to take an already great aircraft manufacturer and make it greater still,” said Textron eAviation CEO Rob Scholl. “We look forward to working with its remarkable team and helping the business achieve its full potential.”

Under the terms of the transaction, Textron purchased Pipistrel for a cash purchase price of approximately €218 million. Pipistrel’s founder and CEO, Ivo Boscarol, will remain a minority shareholder of Pipistrel with an approximately 10 percent interest for a two-year period, during which he will advise on future product plans and strategies. The cash purchase price includes the amount for which his minority interest will be purchased at the end of the two-year period.

About Textron Inc.

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell, Cessna, Beechcraft, Pipistrel, Jacobsen, Kautex, Lycoming, E-Z-GO, Arctic Cat, and Textron Systems. For more information, visit: www.textron.com.

About Pipistrel

In 2020, Pipistrel’s Velis Electro became the world’s first, and currently only, electric aircraft to receive full type-certification from the European Union Aviation Safety Agency (EASA). This achievement followed a series of electric aircraft introductions since the company began research and development of electric propulsion in 2000. Pipistrel’s pioneering work has been recognized through awards from NASA, IDC, and other organizations. The company, which offers a family of gliders and light aircraft with both electric and combustion engines, has delivered more than 2,500 light aircraft worldwide since its founding in 1989 and additionally has both hybrid and electric propulsion models under development.

www.pipistrel-aircraft.com

About Textron eAviation

Headquartered in Wichita, Kansas, Textron eAviation is focused on sustainable flying, backed by Textron’s 100 years of expertise and the restless spirit for innovation that is embodied in our Pipistrel, Cessna, Beechcraft and Bell brands.

Taking the lead in Textron’s development of sustainably powered flight, Textron eAviation is leveraging the industry-leading product design, certification, manufacturing, and aftermarket solutions from across Textron’s businesses coupled with the newly acquired expertise of Pipistrel.

Certain statements in this press release are forward-looking statements which may project revenues or describe strategies, goals, outlook or other non-historical matters; these statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, difficulty or unanticipated expenses in connection with integrating the acquired business; the risk that anticipated synergies and opportunities as a result of the acquisition will not be realized; the efficacy of research and development investments to develop and certify new electric and hybrid electric aircraft products; unanticipated expenses or delays in connection with the launching of such new products; and our ability to keep pace with our competitors in the introduction of such new products.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220415005136/en/

Media:

Michael Maynard

mmaynard@textron.com

401-457-2362

Source: Textron

FAQ

What is the significance of Textron's acquisition of Pipistrel?

The acquisition strengthens Textron's position in sustainable aviation and enhances its eAviation segment.

How much did Textron pay for Pipistrel?

Textron acquired Pipistrel for a cash purchase price of approximately €218 million.

Who will lead Textron's eAviation segment after the Pipistrel acquisition?

Rob Scholl has been named president and CEO of Textron eAviation.

Where will Pipistrel continue its operations after being acquired?

Pipistrel will maintain its headquarters and operations in Slovenia and Italy.

What innovative products does Pipistrel currently offer?

Pipistrel offers a range of gliders and light aircraft, including the Velis Electro, the first certified electric aircraft.